The paper by Paul Collier and Jan Willem Gunning examines the poor economic performance of Africa, characterized by slow growth and significant capital outflows. They review both aggregate-level and microeconomic literature to identify key factors contributing to this situation. The authors find that four main factors are responsible: a lack of openness to international trade, a high-risk environment, low levels of social capital, and poor infrastructure. These issues are largely attributed to government behavior, which has been dysfunctional and detrimental to the long-term interests of the majority of the population. The paper also discusses the role of social capital, both in the community and from the government, and how its absence has led to poor public services and economic control regimes. Additionally, the authors explore the impact of trade restrictions, the lack of financial depth, and high aid dependence on African economic performance. They conclude that the cumulative effect of these factors has created a capital-hostile environment, significantly lowering the rate of return on investment and leading to massive capital flight. Despite recent improvements in some areas, such as social capital and policy reforms, the full impact of these changes on growth remains uncertain.The paper by Paul Collier and Jan Willem Gunning examines the poor economic performance of Africa, characterized by slow growth and significant capital outflows. They review both aggregate-level and microeconomic literature to identify key factors contributing to this situation. The authors find that four main factors are responsible: a lack of openness to international trade, a high-risk environment, low levels of social capital, and poor infrastructure. These issues are largely attributed to government behavior, which has been dysfunctional and detrimental to the long-term interests of the majority of the population. The paper also discusses the role of social capital, both in the community and from the government, and how its absence has led to poor public services and economic control regimes. Additionally, the authors explore the impact of trade restrictions, the lack of financial depth, and high aid dependence on African economic performance. They conclude that the cumulative effect of these factors has created a capital-hostile environment, significantly lowering the rate of return on investment and leading to massive capital flight. Despite recent improvements in some areas, such as social capital and policy reforms, the full impact of these changes on growth remains uncertain.